The Fed is still set to launch QE3, with an announcement coming as soon as the April meeting,...

The Fed is still set to launch QE3, with an announcement coming as soon as the April meeting, says Goldman's Jan Hatzius, fading what the economic headlines, stocks, and bonds are trumpeting. Yes, the economy is moving, he admits, but the Fed believes it needs to grow faster to bring unemployment down.

If the Fed announces any new Q3, stocks will decline, not rise. The market knows that no such action is remotely required and will not greet it happily, should such foolishly transparent action is initiated.

Very true. QE3 would spook the market signaling that the economy is much weaker than the market thought. Though I'm still not sure why anybody follows the Fed anymore. They don't have any particular insight into the markets greater than others. Its just a matter of how they chose to handle issues that prop up.

Everybody wants the Fed to fade away.....Fed just needs to tells us at what unemployment rate they will start hiking rates. Thats it!

This is factually incorrect. The Fed is not 'still set to launch' QE3. They have never said they would do another round of QE, and I think there are more serious reservations from Fed board members than in the past. The public is also not going to approve, which will make them more hesitant to do so. I am not saying they won't do so, but to say that it's a foregone conclusion is flat-out false.